How to Start an LLC in Alabama (2026)
Alabama creates an LLC through a single filing: the Certificate of Formation, delivered to the Alabama Secretary of State under Ala. Code § 10A-5A-2.01. The official state filing fee is $200. And here is the part most guides get wrong: once the LLC exists, Alabama asks for no Secretary of State annual report at all, which makes it one of the lighter-maintenance states in the country. This page walks the whole process in order, with the real form name and the real numbers.
The Document: Alabama's Certificate of Formation
Most states name their LLC formation document the Articles of Organization. Alabama's version is the Domestic Limited Liability Company (LLC) Certificate of Formation. The state assigns it no form number; the current version is identified only by the revision date (10/2022) in its footer. The authorizing statute, Ala. Code § 10A-5A-2.01, puts it plainly: "one or more organizers must execute a certificate of formation and deliver it for filing," and the filing officer is the Secretary of State.
The processing fee is $200, set by Ala. Code § 10A-1-4.31 and confirmed on the Secretary of State's current fee schedule. One quirk worth knowing: you pay a single $200 fee, and the Secretary of State then remits $100 of it to the treasurer of the county where your initial registered agent's office is located. That split happens inside the state's own accounting. It is not an extra charge, and you file nothing with the county yourself.
Alabama LLC Formation, Step by Step
- Pick a name that clears Alabama's rules. The name must contain "Limited Liability Company," "LLC," or "L.L.C." and must be distinguishable from every entity already on record with the state. Search the Alabama Secretary of State's business entity records before you commit, and avoid anything that implies you are a bank, insurer, or government body unless you actually hold that license. Not ready to file yet? The Secretary of State lets you reserve a name ahead of your filing.
- Appoint a registered agent. Ala. Code § 10A-1-5.31 requires every Alabama LLC to continuously maintain a registered agent and registered office in the state. The agent can be an individual Alabama resident or an entity authorized to transact business here, and the registered office must be a street address where legal papers can be served in person, not merely a mailbox or answering service. Our $199 formation includes your first year of registered agent service, then $99 per year after that.
- Complete the Certificate of Formation. The form covers the essentials: your LLC's name, the registered agent and the registered office street address, and the organizer's execution. If you are forming a professional LLC, Alabama uses this same form; you simply check the Professional LLC box (Title 10A, Chapter 5A, Article 8) rather than filing anything separate.
- File with the Secretary of State and pay the $200 fee. You can file online through the Secretary of State's website or mail the completed paper form. The $200 processing fee applies either way, and online submissions generally move through processing sooner than mailed paperwork.
- Adopt an operating agreement. Alabama does not ask you to file one, but your bank will want to see it, and it settles ownership percentages, profit splits, and exit rules before a dispute ever tests them. Without one, the default provisions of Alabama's LLC law decide those questions for you.
- Get an EIN from the IRS. The federal tax ID for your LLC is free directly from IRS.gov and usually issued instantly. It unlocks the business bank account and any future payroll. Never pay a third party for this.
- Know what comes next, which is very little. Alabama LLCs file no annual report with the Secretary of State. The only recurring state filing that can apply is the Business Privilege Tax return with the Department of Revenue, and only in years when the computed tax exceeds $100. The annual requirements page covers exactly how that works.
What Forming an Alabama LLC Will Run You
Ready to get started?
Get Started- State filing fee: $200, paid once to the Alabama Secretary of State with the Certificate of Formation
- Our formation service: $199, covering preparation and filing of the Certificate of Formation, with the first year of registered agent service included, then $99 per year
- Typical recurring amount owed to the state: $0 for most small LLCs, because the Business Privilege Tax return is only required when the computed tax tops $100
The full breakdown, including agent changes and foreign registration, lives on the Alabama LLC filing fees page.
Does Alabama Require an Annual Report?
No. Alabama has never required a Secretary of State annual report from LLCs, and the corporate version was repealed in 2024. What can apply instead is the Business Privilege Tax return with the Department of Revenue, and under current law an LLC whose calculated tax is $100 or less files nothing at all. See the Alabama annual requirements for the details.
File It Yourself or Have Us Do It
Filing directly is entirely doable: download the Certificate of Formation from sos.alabama.gov or use the state's online filing, and pay the $200 fee. Or hand it to us and we prepare and file the document with the state on your behalf, with your registered agent seat covered for year one.